Perry Ellis International announced last week that it plans to continue to exit noncore, low-growth brands in order to focus on and grow the profitability of its Perry Ellis, Original Penguin and Rafaella sportswear labels. The company said it exited 23 private and exclusive brands since it started to shed brands during the fiscal 2014 year.
Second-quarter revenue dipped 4 percent to $204 million, compared to $212 million in the second quarter last year. The decline was primarily due to the planned exits, however, increases to its golf lifestyle program and its Original Penguin brand lessened the blow, and the Perry Ellis men’s collection achieved solid sell-through at retail, the company reported.
Oscar Feldenkreis, president and chief operating officer of Perry Ellis International, said, “There is positive momentum in our businesses as the team is focused on driving higher margin sales, adding licensing agreements and expanding our geographic reach and categories served.”
Looking ahead, the company announced it would grow the Original Penguin and Perry Ellis brands internationally through third party licensees and expand its direct-to-consumer business. Second quarter brick-and-mortar sales delivered a 2.7% bump comparable to same store sales the year prior. Direct e-commerce sales grew 20 percent. The company said it expects to build on its brick-and-mortar presence and enhance its brands by leveraging the competency of its retail teams in the U.S. and Europe.
George Feldenkreis, chairman and chief executive officer of Perry Ellis International, added, “While there is more work to do, we believe we have the right plan in place to create positive returns for shareholders.”